Another CEO Pay Cut That Isn’t

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

I understand that stock options are difficult to understand.  And I understand that some journalists seem to have a keen interest in reporting how “overpaid” CEOs are, and others a similar interest in gleefully reporting that a CEO took a “pay cut.”The problem is, CEOs rarely have their compensation reduced through a direct action by the Compensation Committee of the … Read More

Human Capital Considerations – A Must Role For Compensation Committee

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

I was thrilled to be invited to co-author a piece with David Creelman (Canada) and Andrew Lambert (UK) of Creelman Lambert as we collectively continue to explore how to improve the linkage between Board-level governance processes and the necessary focus on human capital.Our key point is this: What’s the solution? There are three things we need: a committee with a … Read More

The Most Wonderful Time of the Year (Peer Groups)

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

“There’ll be scary ghost stories And tales of the glories of… Long, long ago”-Edward Pola and George Wyle as performed by Andy Williams (1963) “It’s the Most Wonderful Time of the Year” Yes, it’s the most wonderful time of the year – Compensation Committee season! As Committees gather to review 2011 and plan for 2012, we have a record number … Read More

About Four Years Ago

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

I was updating my website this weekend, and revisited some “old” articles I had authored.  Way back in late 2007 through early 2008.The field of equity compensation has gone through such tremendous upheaval over the past four years, I was ready to delete these links until I pondered for a moment the titles, that could have been written and be … Read More

Equity Compensation Program Design: “How It Works”

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Webinar this week:  Behavioral Economics and Equity Compensation, Part ISteve Jobs said that “It’s not just what it looks like and feels like.  Design is how it works.” He of course was talking about things like Macs and iPods (and, later, iPhones), but the same applies to equity compensation program design. The current governance environment has drawn excessive attention to … Read More

Music Lessons

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Every Labor Day weekend in Seattle is the Bumbershoot festival.  The format varies year to year, but it’s generally 3 days and more than 100 bands.  There are a lot of other artistic activities as well, but I focus on the bands.  It draws a couple hundred thousand people each year.You are guaranteed to see (1) a band you’d loved … Read More

Everything That Glitters May Now Be Gold

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

In the 1990’s and into the 2000’s, employee stock options glittered.  When the glitter faded due to market downturns and increasing volatility, new forms of equity compensation emerged to restore the sheen – option exchanges and repricing and restricted stock units.  This past week’s market volatility, economic uncertainty, and the contributing factors took away a bit of the remaining glitter.With … Read More

A New Type of Performance Plans?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Over the past few years we have seen performance share units and other varieties of performance based awards grow in prevalence in response to a series of corporate governance concerns.  What concerns? Stock options, time-vested awards, executive ownership levels, and most importantly the link between pay and performance.In this first round of say-on-pay in the US this spring, we saw these … Read More

Perfecting Perception: The Behavioral Economics Approach to Equity

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

At the NASPP’s Silicon Valley Chapter Annual Conference last week I participated on a panel titled Perfecting Perception:  Understanding Perceived Value – What It Means for Your Stock Program.  The discussion, moderated by Emily Cervino of the CEP Institute with Keith Pearce of Intel and Jason LeBovidge of Fidelity, covered several approaches to the issue.And what is the issue?  It’s that … Read More